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October 2017

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As many as one lakh power loom units in Somanur and Palladam regions in Coimbatore district have froze production for over a week now. This was essentially an aftermath of a recession in demand for grey fabric.

Although there has been a marginal increase of 25-50 paise a metre in the fabric for the last two days, it has brought no relief to the weavers and cloth manufacturers because it barely succeeded in meeting the cost of production.

The halt in production was given force to improve the demand for the fabric. However, even after a week of cut in production, yarn prices have not shown any sign of sliding down or fabric prices going up.

Besides, weavers have also called for problems, themselves, since they have taken no initiative to produce end products like home textiles and have instead waited for businessmen from north to sell their raw material.

Initially with reduction in production, the rates for grey fabric automatically went up. However, this time, despite stoppage of production for over a week prices for the fabric have not shown any significant change.

At a time when the material was sold for 14.50 a metre, weavers procured a profit of 50 paise. In contrast, now that the cloth is selling for 15.25 a metre, manufacturers are actually complaining of a loss of 25 paise a metre.

In other words, the market has depicted a very unusual trend and weavers and manufacturers are still unsure about the next stance to be taken, more precisely, whether or not to restart the production.